Lovely confluence of trendline, 0.8800 handle and two forks made this a no-brainer short entry.
Comments
ForceFollower
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Good eye. Let's see what it does at the lower blue MLH; next - the grey one.
xologeis
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This was a quick scalp only and I took it off on the HBR around 0.8754 for 41 pips. Aussie has been showing a lot on the bid side and when you see most retail traders saying "It's going to 0.8500" etc I start thinking their positions will get lifted off them first ;D
And lo n behold thats exactly what happened, shot back up, cleared all those stops sitting just above the handle before coming back down. Usually I will scalp the first drop and get out on the slightest whiff as usually if there's a big order stack being worked price will get pushed back to it until it has all been filled. Test/retest is the core of trading, gotta fill those orders ;D
I see. But as you can see it has failed to make new highs, so, unless it holds above .8742, a break of the low at .871 is currently my scenario.
xologeis
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Agreed, as I said, the 1st short was a scalp, and you can see on the above as well that I shorted the 2nd play as well, with initial target @ 0.8740 which it just hit so next is the demand pockets just below it down to 0.8710 as you also have it. Then plenty of space down to '90 and '70.
One scenario the could come about on any of these levels is that those bids from before start flowing in again and we get a 100 odd pip range for a bit. Interested to see what the big plays turn out to be.
xologeis
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And to be clear, when speaking of bids I was referring to the 1st push down, that was gobbled up right quick as we saw, but that was the extent of my idea on it. The 2nd short was also at the blue ML and the 0.8819 orange major LBR I had marked on the main chart here for what it's worth.
ForceFollower
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If it keeps going down, it'll meet switchback support:
xologeis
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That would be a lovely clean shot long right off the floor ;D